Suppose that the government decides to place a ceiling on a specificMedicare-approved prescriptiondrug, and it establishes the price ceiling above the previous equilibrium price of the drug.

How will manufacturers of this drug respond to thegovernment's pricecontrol?

If the price ceiling is above the market clearingprice, quantity supplied will be__________ the quantity demanded.

As aresult, a__________ will exist in the market.

A.

equalto; government threshold

B.

lessthan; shortage

C.

greaterthan; black market

D.

greaterthan; surplus